- Hemang Jani is an Equity Strategist and Senior Group Vice President at MoFSL.
- He mentioned five companies in the auto sector where there are good investment opportunities.
- He also said that the shares of three other companies are likely to give good returns.
Which three stocks would you ask your clients to buy during the current downturn?
There’s a lot going on right now, including new variants, and it’s happening at a time when the market is aggressively reopening. We primarily believe that money will move away from the trend of reopening – such as travel, multiplexes, hotels and all related sectors to telecom, IT, pharma and to a lesser extent consumer.
If one is thinking of strategic rotation plan then we will go with specific midcap IT names. Zenser is the company that has been our pick, with a nearly 20 percent improvement from the top tier. Besides, ICICI Bank and Axis Bank, which have no earnings concerns, have seen a decline of 20-25 per cent from the top levels, mainly on account of selling by FIIs.
At the top of this will be the name of ICICI, which we are currently choosing. Telecom because it recently announced price hike and Bharti (Airtel) is doing very well. However, it is not just a one day programme. This is something that will continue for the next few quarters and years. There is going to be a significant re-rating both in terms of earnings and investor portfolio. Bharti will do very well in the current situation.
In auto, where do you think the new purchases are worthwhile and where will they be negative?
Many things are working in the auto sector. One thing is clear, passenger vehicles and consumer vehicles are two areas on which we have a positive outlook, be it supply constraints or chip issues. We are confident that these issues will be resolved soon.
More importantly, there will be demand in the market, so Maruti will be at our top peak and just two days back Maruti had a dealer conference in Jaipur in which it announced the launch of new products and the overall growth is expected to increase. has been That’s why Maruti is on our top peak.
In addition, from a strategic perspective, we expect monthly consumer vehicle statistics to be staggering. For short term look at Tata Motors and Ashok Leyland. We would also like to name Motherson Sumi and Bharat Forge. Share prices and expectations are fluctuating in the last four-five days after the new look and changing situation of Corona, but both Motherson Sumi and Bharat Forge are our choices in terms of investment.
From newly listed policy bazaar to companies including Paytm and Nayak and you don’t want to know where did you subscribe and which IPO was issued. But, where will you place these newly listed companies and make fresh purchases after the recent correction in the market?
Newly listed companies are like a business opportunity that retail investors are really looking to invest in. Despite being a large market cap company, the shares of most companies are seeing fluctuations of about 3 to 10 percent daily after listing.
We believe that names like Nayak, Paytm, Zomato and Policy Bazaar are good retailers. This is a good name for those who are actively investing in the market. We are not sure whether these companies will give big returns in the next 2-3 years.
It is difficult to give long term calls, but even when the market has lost 10 per cent from the top, most of them still hold shares. Nayak and Zomato as well as a few other stocks are stable even in a weak market, which means there is a lot of potential.